In an effort to help address some of the sustainability issues experienced by the group insurance market, the Australian Prudential Regulation Authority has released a new guidance paper.
The Prudential Practice Guide LPG 270 Group Insurance Arrangements outlines prudent practices in relation to group insurance arrangements with a focus on life insurance provided inside superannuation.
The release of the guidance is part of a suite of activities that APRA says are intended to address poor practices that have emerged in the group insurance market, contributing to deteriorating experience for many participants.
Topics covered by the guidance include:
- Claims practices and the need for insurers to implement a claims philosophy
- The information that should be disclosed by the insurer when responding to a group insurance tender request
- Services that should be provided by the insurer and minimum service standards/timeframes
- Data management
APRA Deputy Chairman, Ian Laughlin, said that over the last few years part of the group insurance market has fallen short of appropriate practice in respect of risk management and governance.
“The release of this prudential practice guide reflects APRA’s heightened focus on group insurance and forms part of APRA’s response to issues in both the superannuation and life industries,” Mr Laughlin said. “APRA expects industry to continue to improve practices in this market.”
Click here to view LPG 270.
Brilliant! 10 years late. Pity about the cross – subsidisation by fully underwritten clients – those unfortunate enough to work for a company with less than 20 employees …or the self – employed!
Where have these brilliant minds been hiding all this time? At ASIC perhaps?
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